A Restaurant Chain Has Two Locations in a Medium-Sized Town

question 89

Multiple Choice

A restaurant chain has two locations in a medium-sized town and, believing that it has oversaturated the market for its food, is considering closing one of the restaurants. The manager of the restaurant with a downtown location claims that his restaurant generates more revenue than the sister restaurant by the freeway. The CEO of this company, wishing to test this claim, randomly selects 36 monthly revenue totals for each restaurant. The revenue data from the downtown restaurant have a mean of $360,000 and a standard deviation of $50,000, while the data from the restaurant by the freeway have a mean of $340,000 and a standard deviation of $40,000. Assume there is no reason to believe the population standard deviations are equal, and let μ₁ and μ₂ denote the mean monthly revenue of the downtown restaurant and the restaurant by the freeway, respectively. Which of the following is the correct value of the test statistic to analyze the claim?

• A) t₆₆ = 1.848
• B) t₆₇ = 1.848
• C) t₆₆ = 1.874
• D) t₆₇ = 1.874

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Definitions:

The Spacing Effect

A memory phenomenon where learning is greater when studying is spread out over time, as opposed to studying the same amount of content in a single session.

Procedural Memory

A type of long-term memory responsible for knowing how to do things, also known as motor skills, involving tasks such as riding a bike or typing.

Self-Reference Effect

The tendency for individuals to more easily remember information that is personally relevant or relates to themselves.

Worse

indicates a lower quality or more negative condition compared to another situation, condition, or outcome.